Divisions that threaten a split in the credit union movement would have emerged even if it had not lost €34.3 million in a bungled computer project, its president said yesterday. Mr John O'Regan said the ISIS computer project had been totally unsuccessful and agreed with a review commission whose report said the board of the Irish League of Credit Unions was "entirely dysfunctional".
"The report was a very accurate analysis of the situation at the moment," he said.
Ahead of a special delegate conference this weekend, which will debate 65 motions for change at the league, he said need for reform was more serious than when the commission was established last year.
"I will be responsible to ensure that everything that will be agreed will be implemented within the shortest possible timeframe."
Chaired by the industrial relations consultant Mr Phil Flynn, the commission said in a report last month that radical change was required to transform the league. Some 2.2 million credit union members have more than €6.6 billion on deposit with about 535 member unions.
But, with the departure of Tullamore Credit Union already notified to the league and other unions threatening to quit, the conference is expected to be contentious. Mr O'Reagan said: "I believe we have gone through a very difficult time and this has been reflected in tension right throughout the movement. Inevitably those tensions were found at the board as well.
"I know the board is fully committed at this time to a focused approach to the issues facing the movement. I believe lessons have been learned. Now is the time to act on those lessons."
Mr O'Regan identified crucial areas of reform, recommended by Mr Flynn. that would be discussed. They include:
funding structure;
the possible appointment of a chief executive;
whether a bi-annual conference would be introduced;
the possible reduction of the board's size;
limits on directors' period in office.
They also include reform of the ECCU life assurance company controlled by the league, which is the subject of scrutiny by the Competition Authority. The motions will also address the structure of the savings protection scheme run by the league.
Mr O'Regan cautioned against a split. "Any fracture of the league would be very serious going forward," he said.
